The case
of a systemic crisis where this system would no longer work was not, however, addressed at all by the Directive (para 160).
For the EFTA Court, the Directive is only made for bankruptcies of individual banks, and therefore it is a normal consequence
of a systemic crisis that deposit - guarantee schemes fail in such situations, leaving the depositors unprotected.
According to the EFTA Court, Article 7 did not, therefore, impose any obligation to ensure compensation if a deposit - guarantee scheme was unable to cope with its obligations in the event
of a systemic crisis (para 144).
2) If the ratio of the Deposit Guarantee Directive is that it only comes into play when a single bank collapses and not in the event
of a systemic crisis, why is it not clearly stated in its recitals?
That's when you get the actual sort
of systemic crisis.
The challenge for Quantum Dawn 2's victims was not only spotting a problem, but communicating with rivals, exchanges and government authorities to conclude that markets were in the throes
of a systemic crisis and needed to be shut down.
Not exact matches
The lesson
of the 1930s, the 2007 - 2008
crisis and the European
crisis of 2011 seems pretty clear: banking stress is a sign
of potential
systemic risk.
The good news is most believe China's vast foreign currency reserves should protect it — and the rest
of the world — from a worst - case scenario: a
systemic financial
crisis.
While junk bonds may not represent a
systemic risk as credit derivatives did during the financial
crisis, they can be one
of the more effective leading economic indicators.
Investors and securities markets continue to benefit from common - sense reforms enacted in the wake
of the financial
crisis, including policies that increase transparency regarding the activity
of advisers to private funds, enhance
systemic stability, minimize conflicts
of interests, and hold bad - actors accountable.
«I don't think bitcoin is prevalent enough at the moment to be a
systemic threat in the way we experienced during the financial
crisis other threats; it needs watching carefully but I don't think we're there yet,» said Andrew Bailey, chief executive
of the Financial Conduct Authority, during a Thursday interview on BBC's Newsnight.
The theory is that the credit
crisis in the United States might have been avoided if a central authority had seen the
systemic danger posed by Wall Street's aggressive selling
of securities backed by subprime loans and other complex financial products.
He correctly pointed out the
systemic nature
of the
crisis and the serious risk
of contagion not just for Europe, but also for the world economy.
Notably, several banking regulations that previously sought to prevent concentration
of systemic risk in our financial system were repealed by Congress in the 1990s — leading in part to the «too - big - to - fail»
crisis.
For example, during the first flare - up
of the European sovereign
crisis back in 2011 (when Greece really did hold
systemic risk potential) and when U.S. political discord led to significant fiscal tightening, the Fed offset both
of these with even greater policy accommodation.
His work focuses on financial regulation, corporate law, contracts, and cross-border transactions and disputes, and his most recent article, «Boilerplate Shock: Sovereign Debt Contracts as Incubators
of Systemic Risk,» examines the role
of financial contracts in the Eurozone sovereign debt
crisis.
Artemis Vega and Artemis Hedgehog seek to generate
crisis - alpha and profit from periods
of volatility dislocation and
systemic crisis without the negative losses experienced by more traditional hedging products.
Indeed, we find in fact that there is no statistical evidence
of a relationship between higher capital ratios and lower risk
of systemic financial
crisis.
Quick to say they found the root - cause
of the
crisis — a banking system thats massive financial leverage and global interconnectedness created profound
systemic risks to our modern economy — they swiftly passed Dodd Frank, a comprehensive regulatory reform package dressed up as the antidote to our sick financial system.
Those two things are simply the byproducts
of a much deeper
crisis: the
crisis of systemic poverty.
In the US, strict and costly regulations in the aftermath
of the financial
crisis were applied with a broad brush, to large financial institutions capable
of creating
systemic catastrophe and to community banks with risks tied only to the communities they faithfully serve.
Thus
crises like these often reflect
systemic issues
of justice and liberation.
An extended inability to provide for seemingly endless choice would result in a
systemic crisis, requiring the state to face down a populace suddenly confronted with the one unacceptable «choice»
of restricted choices.
This approach recognizes that the family
crisis is caused both by cultural changes and by social -
systemic developments in areas
of work, economics, child care and gender inequality.
Given the underlying problems facing Russia's leadership — predictions
of future economic
crises and growing discontent with
systemic corruption — the regime was particularly sensitive to this opposition.
It is largely accepted that these programs lead to
systemic macroeconomic instability across the continent and that these policies drove countries
of the global south into «debt
crisis, austerity, decline and conflict» (Bond) and «acute material scarcity» (Mbembe).
The state's
systemic failure to provide enough resources for all
of its students and to do so equitably — while giving all teachers the tools and support they need — is the real
crisis and the one our governor is trying to sweep under the rug,» NYSUT President Karen Magee said.
@Avi Well, what happened to AIG was a
systemic crisis, where all credit default swaps were at risk
of having to be paid out.
But I don't see why insurance companies couldn't handle bank runs that weren't part
of systemic financial
crises.
However, these are negligible costs in comparison to the costs
of financial
crises, or implementation costs
of Basel III, which will effectively not reduce
systemic risk,» explains Thurner.
Further, the
systemic effects over time are creating resource deficits due to increasing rates
of higher needs students which are reaching
crisis levels.
Jackson in particular has done almost nothing to advance
systemic reform in his own hometown, and has offered little in the way
of ideas on how to end an educational
crisis that condemns half
of all young black men to the economic and social abyss.
None
of those 50 banks would be big enough to cause a
systemic crisis.
The rating agency models give some benefit to lack
of correlation in the business mix, but in a
systemic crisis, there is greater correlation.
«The outbreak
of the
crisis and its spillover to the entire world reflected the inherent vulnerabilities and
systemic risks in the existing international monetary system,» Zhou wrote in an essay posted on the bank's website Monday.
All
of these were large enough in their own right to be minor
crises, and they sent measures
of systemic risk up for a while, but ultimately, they were self contained, because market players with strong balance sheets picked up the pieces from failed players, and earned a reasonable return off them after buying up the «toxic waste» at fire sale prices.
Projects
of particular interest are those that apply a
systemic lens to the root causes
of global warming; enroll the leadership
of frontline communities most vulnerable to the impact
of climate change; push for broad - based civic engagement and community action; and wherever possible leverage the value artists and culture bearers bring to processes for devising and deploying practical solutions to this global
crisis.
It is the first book to consider the various ways in which contemporary artists from North Africa and the Middle East utilize and disrupt the function
of the archive and, in so doing, highlight a
systemic and perhaps irrevocable
crisis in institutional and state - ordained archiving across the region.
The
systemic nature
of the climate is why climage change is the most serious
crisis humanity has ever faced.
Grassroots leaders
of Baltimore's Human Rights Organization, the United Workers, are calling for dialogue and reconciliation with neighbors and city policy makers to address the
systemic racism and poverty that has plagued the City for 40 years and get below the surface
of this evolving and troubling
crisis in our city.
And a
systemic market failure will leave Virginians, along with residents
of other states, paying more to burn fracked gas for decades, unwillingly and unfairly doing our part to exacerbate the climate
crisis.
Regulators to improve disclosure
of climate risk — The global financial
crisis proved that the financial markets are not currently set up to manage
systemic risks.
We need to base our policies and actions on a
systemic and structural analysis
of the origins
of the climate
crisis, giving specific consideration to how climate change affects different genders.
It is important to frame policies and actions based on a
systemic and structural analysis
of the root
of the climate
crisis and giving specific consideration into how it affects different genders, more so women.
Some participants hoped the global financial
crisis in 2008, and the European financial
crisis now, might force resolution
of systemic Wicked Problems with the global economic system.
Day two saw more introduction to some
of the cross-cutting
systemic issues that intersect with the climate struggle, with the migration
crisis, the EU - US trade talks and more we on the agenda.
However, that hasn't worked up until now, and without a
systemic shakeup
of structure that avails potential clients to legal professionals interested in access to justice, the
crisis will remain in control
of the efficacy desired in all legal systems interested in true justice.
The Court started off by noting the magnitude
of the «
systemic crisis» experienced in Iceland which raised the question
of whether, in such a situation, the defendant could be expected to ensure payment to depositors as foreseen by the Directive (para 117).
On points 1 and 2 I'd say I can somewhat see the Court's point that there may be
crises of «
systemic» magnitude that even a deposit - guarantee scheme will fail.
Based on its recitals, the Court concluded that it dealt «at least primarily» with the case
of a failure
of individual banks and not
systemic crises (para 150).